Location: Sullivan County, NY | Metro: Kiryas Joel-Poughkeepsie-Newburgh, NY MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,230 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $264,839 | 0.68% | D |
| 3BR | $2,260 | $371,041 | 0.61% | D |
| 4BR | $2,430 | $441,149 | 0.55% | F |
U.S. Census Bureau data (2024)
Sparrow Bush, NY, located in ZIP code 12780, is a modest-sized neighborhood with a total population of 2,346 residents. The area has a relatively low percentage of renters at 24.8%, indicating a primarily owner-occupied community. The median household income here stands at $74,468, reflecting a middle-class neighborhood where residents have stable financial situations. The median home value in Sparrow Bush is $344,870, suggesting that homeownership is accessible but not without significant investment.
The economic landscape for rental properties in Sparrow Bush is intriguing. According to the latest Fair Market Rent (FMR) data for ZIP code 12780 for fiscal year 2024, the FMR is set at $1,430. This figure represents the maximum amount that a Section 8 voucher holder can pay towards their rent. In contrast, the actual market rent as per the Census American Community Survey (ACS) is $1,216. This discrepancy between the FMR and the market rent presents an opportunity for landlords who can leverage the higher FMR to secure more financially stable tenants through the Section 8 program.
Given these numbers, Sparrow Bush is well-suited for both hands-off voucher operators and hands-on value-add buyers. For those looking to operate hands-off, the higher FMR compared to market rent ensures a steady stream of income with minimal risk, as the government subsidizes the difference between the market rate and the FMR. On the other hand, for hands-on investors aiming to add value, there's potential to improve properties and charge closer to the FMR, thereby increasing profitability while still offering affordable housing options to low-income families.
In summary, Sparrow Bush offers a balanced environment for real estate investors interested in Section 8 properties. With a median income that supports a stable tenant base and a median home value that suggests reasonable property costs, the neighborhood presents opportunities for both passive and active investors to thrive. The key lies in understanding the local market dynamics and leveraging the FMR to optimize returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.